Rothschild & Ausbrooks PLLCGoodlettsville Bankruptcy Lawyer | Rothschild & Ausbrooks, PLLC2024-03-17T20:42:04Zhttps://www.rothschildbklaw.com/feed/atom/WordPress/wp-content/uploads/sites/1201201/2021/02/cropped-Rothschild-og-image-32x32.jpgOn Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496822024-03-17T20:42:04Z2024-03-17T20:42:04Zhealthcare costs that are so high they can’t conceivably pay their bills may realize they have to do something before they drown in debt. One option for these individuals is filing for bankruptcy.
The high cost of healthcare
Conditions such as cancer require ongoing care, which can lead to financial ruin for many. This includes those who have decent insurance. The hidden costs and uncovered services can accumulate, creating an insurmountable financial burden for many. High deductibles, copayments and premiums, combined with the limits on coverage, often leave patients with significant out-of-pocket expenses.
Insurance may not cover everything
Many insurance policies have gaps in coverage that can result in substantial costs for patients. For example, certain medications may not be covered. Additionally, out-of-network charges can occur unexpectedly if a patient receives care from a provider outside their insurance company's approved network, leading to higher charges that the insurance doesn’t fully reimburse. These financial gaps can quickly become overwhelming and push individuals towards a financial crisis.
The ripple effect of medical debt
The financial impact of medical debt extends beyond just the immediate bills. It can lead to a cascade of financial difficulties, including damaged credit scores, which affect the ability to secure loans, mortgages and other financial products. For some, the solution becomes a choice between paying for healthcare and covering other essential living expenses, such as food and housing. This untenable situation often forces people to deplete their savings, sell assets or even forego necessary medical treatments, further exacerbating their health and financial situation.
Seeking relief through bankruptcy
Many individuals face mounting medical debt see bankruptcy as the only viable path to financial relief. Bankruptcy can discharge or reorganize medical debts, which can provide a fresh financial start for a filer. This effort may also improve their mental state and provide them with a more stable future. As such, if you’re struggling with medical debt, it may benefit you to look into your rights and options under the law.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496812024-03-15T17:55:51Z2024-03-15T17:55:51ZCredit cards are often linked to bankruptcy, and it sometimes relates to their high interest rates. People may be attempting to pay off their debt, but they can’t do it because the interest adds so much to that debt every month.
But how did they get into debt in the first place? It may be that their credit card psychologically tricked them into spending more money than they wanted to. Studies have found that consumers tend to spend more on credit cards than they do with cash.
Why does this happen?
There are two main reasons why this happens. The first is that the transaction doesn’t always feel “real” to the consumer.In other words, if you had to take a $100 bill out of your pocket and hand it to someone in order to receive a product or a service, you would likely think carefully about that transaction. You would be well aware that you were giving that person your hard-earned money. But if you simply charge it on a credit card, it doesn’t feel real and you just think of it as a charge that you can figure out how to pay off in the future.Additionally, credit cards make it easier to make impulse purchases or to spend more than would even be possible with cash. If someone only has a $100 bill, that is the most that they can spend. But if you want to make an impulse decision that costs $150, you can still do it with a credit card.Make no mistake about it: Credit cards are designed to get you to spend money. If this leads to overwhelming debt, then you need to know about bankruptcy and all of your other potential legal options.
]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496792024-02-29T19:55:42Z2024-02-29T19:55:42ZThere are many reasons that people feel the need to file for personal bankruptcy. Unexpected medical bills, job loss or the inability to find work that pays enough to meet rising living costs have landed many people in this situation.
Before filing, you should understand what a personal bankruptcy filing can and cannot do.
Personal bankruptcies do not cover all types of debt
While Chapter 7 and Chapter 13 bankruptcies can help with many debts, they won’t necessarily cover all of your debts. It depends on what your debts are for. Here are some things that it will not cover:
Outstanding child support payments
If you owe money for child support, the law obligates you to pay this. That’s because the child will likely rely on that money coming in (even though they won’t actually handle it themselves). If you fail to pay, the courts could create an order to take it from your wages or other sources, even if you file for bankruptcy.
Student loans
There is a vague chance a court would allow you to include student loans in your filing, but mostly, they’ll refuse. Some politicians have argued for more leniency, but the resistance has been too great for significant change to pass.
Outstanding taxes
Most kinds of tax still need to be paid, even by those who successfully file for bankruptcy. However, there are cases where a filing could rid you of some tax debt.It’s not all bad news, though. If a bankruptcy filing removes (or, in the case of Chapter 13, rearranges) your other debt obligations, you should have more spare money to pay those debts you cannot discharge.Learning more about your options is crucial if you have debt you cannot pay.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496782024-02-21T19:09:07Z2024-02-21T19:09:07ZA lot of people delay filing for bankruptcy for a considerable time. While it is essential that you take your time to consider if it is right for you and to look for alternative solutions, delaying the inevitable can prolong your agony.
Having debt you cannot afford to pay back can play havoc with your mental health, and filing for bankruptcy can help a lot.
Many people feel bad about filing
There has always been a stigma about bankruptcy in some circles. Even though many famous businesses have had to do it, and even though many well-known successful entrepreneurs needed to file for bankruptcy before striking business gold.There is a growing awareness that life is not always fair and that working hard does not guarantee you can afford to live. Job losses and medical emergencies are just two of the things that have caused plenty to reach debt levels they’re unable to cover. You’ll probably find that most people are sympathetic, rather than critical if they find out you have filed.
Lenders expect some people to file
Lenders are not stupid. They run highly profitable businesses, lending to a variety of people and companies and knowing that some of them won’t be able to pay it back. The total amount they make in interest and late payment fees covers the occasional cost of any debts they need to write off.If you are feeling reluctant to file, consider help to learn more about how bankruptcy will work.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496772024-02-07T13:25:21Z2024-02-07T13:25:21ZDeclaring bankruptcy can provide a fresh start and alleviate some of the overwhelming stress factors associated with financial hardship.
Relief from financial burdens
One of the primary sources of anxiety for individuals facing financial difficulties is the burden of debt. Mounting bills, incessant creditor calls and the constant struggle to make ends meet can take a significant toll on mental health.
By declaring bankruptcy, individuals can eliminate or restructure their debts. This may provide a sense of relief from the constant financial pressure. This newfound financial “breathing space” can alleviate stress and anxiety, allowing individuals to focus on rebuilding their lives without the overwhelming weight of debt hanging over their heads.
Opportunity for a fresh start
Bankruptcy offers individuals the opportunity for a fresh start, free from the constraints of past financial mistakes. It serves as a legal process to resolve debts and provides a clean slate to rebuild one’s financial future. This fresh start can have profound psychological benefits, instilling a sense of hope and optimism for the future.
Instead of being weighed down by past financial missteps, individuals can embrace the opportunity to make positive changes and chart a new course toward financial stability. This sense of empowerment can significantly improve mental well-being and foster a more positive outlook on life.
While declaring bankruptcy may initially seem like a daunting and negative experience, it can actually have several positive effects on mental health. By understanding the potential benefits and seizing the opportunity for positive change, individuals can emerge from the bankruptcy process with a renewed sense of hope and resilience.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496762024-01-29T01:18:49Z2024-01-29T01:18:49Zinformed decision-making.
The role of credit counseling
Credit counseling isn’t merely a procedural step; it can serve as an educational platform. Depending on the approach taken, individuals may participate in budgeting, debt management and financial planning sessions. This empowers them with essential skills to navigate their post-bankruptcy financial landscape.
Remember, a competent credit counseling agency doesn’t just guide toward bankruptcy; it assesses alternative solutions. This may involve debt consolidation, negotiation with creditors or other strategies that could potentially avert the need for bankruptcy.
The credit counseling process
The first step in credit counseling involves a comprehensive analysis of your budget. This process identifies areas where adjustments can be made to optimize your financial resources and allocate funds to debt repayment.
Credit counseling extends beyond immediate financial concerns. It includes educational components to empower individuals with invaluable knowledge and skills necessary to make informed financial decisions. From understanding credit scores to effective budgeting, this education is invaluable in preventing future financial challenges.
Understanding what credit counseling entails and how it can positively impact your financial future is crucial when facing the prospect of bankruptcy. By taking proactive steps, individuals may regain control of their finances, proceed to file for bankruptcy and strive toward a more stable and secure financial future.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496732024-01-15T15:35:38Z2024-01-15T15:35:38ZBankruptcy can take months or years
Individuals filing for bankruptcy usually choose between Chapter 7 and Chapter 13 proceedings depending on their income and current financial resources. A Chapter 7 bankruptcy is only an option for people who can pass a means test that compares their income with the state median. However, it is the fastest route to the discharge of someone's debts. In some cases, it may only take a couple of months to go from the initial filing date to the discharge of someone's unsecured debts in a Chapter 7 case.
Chapter 13 filings take significantly longer. Before someone might qualify for a discharge, they have to complete a multi-year repayment plan. They will need to make anywhere from three to five years of structured payments to their creditors through the bankruptcy trustee overseeing their case. It is only after negotiating and completing a repayment plan that someone can go back to court and secure a discharge from a judge.
Depending on the current volume of cases going through the courts, the type of bankruptcy someone files and even the unique factors in their case, bankruptcy could last for a season or more than half a decade. Understanding the likely timeline for bankruptcy proceedings can empower those trying to take control of their financial obligations to make informed choices accordingly.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496722024-01-13T02:58:15Z2024-01-13T02:58:15Zhow bankruptcy works can help to shed light on why the myth that this process can cost individuals everything they own is not grounded in reality.
Bankruptcy basics
While Chapter 7 bankruptcy is often referred to as “liquidation bankruptcy,” it very rarely leads to the liquidation of any assets, and it never leads to the liquidation of all of a filer’s assets. Legal exemptions protect many assets, like a portion of the equity in a filer’s home, basic household goods, a vehicle up to a certain value and retirement accounts. Only particularly valuable non-exempt assets are at risk of being sold during a Chapter 7 bankruptcy case.
By contrast, Chapter 13 bankruptcy, often known as a “wage earner's plan,” doesn't require selling any assets. Instead, it involves creating a repayment plan to pay back all or a portion of a filer’s debts over time -- usually three to five years. Under Chapter 13, debtors can keep their property, including non-exempt assets, as long as they adhere to their repayment plan.
The primary goal of bankruptcy is to give people burdened by debt a fresh start. This doesn't mean leaving them with nothing. Instead, it provides a structured way to handle overwhelming debt while retaining enough to start anew.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496672023-12-29T19:37:33Z2023-12-29T19:37:33ZIt’s stressful to have debt hanging over your head. Excessive debt is one of the chief causes of the kind of psychological distress that can lead to broken marriages, chronic health problems, trouble sleeping and more. Bankruptcy offers real financial relief – but a lot of people are hesitant to file because they’re afraid their employers will find out and fire them.
You’re protected by law – if your employer even finds out
Most of the time, employers never find out when their employees file for bankruptcy. While bankruptcies are public records, you have to actually go looking for them – and your employer probably isn’t that curious (or intrusive). Realistically, your employer is more likely to find out about your debt problems if you don’t file for bankruptcy. Eventually, your creditors may seek to track you down through your employer and harass you at work, which can be embarrassing. You may also find yourself facing garnishment of your wages over certain debts, in which case your employer will definitely be involved.Ultimately, the Bankruptcy Code itself protects you from being fired. Under the law, it’s illegal for an employer to discriminate against you simply because you have gone bankrupt. If your money issues are a concern for some reason (such as when you work in the financial sector), the fact that you are being proactive about resolving your debts is actually a positive. Someone with a mountain of bills could be ripe for a bribe or a security risk, while someone who is upfront about their financial troubles can be regarded as trustworthy.Don’t let your fears about the future stop you from dealing with your debts today. Legal guidance can help you understand more.]]>On Behalf of Rothschild & Ausbrooks, PLLChttps://www.rothschildbklaw.com/?p=496662023-12-13T20:03:55Z2023-12-13T20:03:55ZYour credit score is the number that financial institutions will use to determine how trustworthy you are as a borrower. Someone with a high credit rating may receive lower interest rates or larger lines of credit. Someone with a low credit rating may be denied for the same lines of credit, mortgage loans, car loans and things of this nature.
That’s why people are sometimes concerned about filing for bankruptcy, as it will reduce their credit score. But the key thing to remember is that the score can be built back up again, which is often the focus after a bankruptcy case. Here are a couple of ways to do it.
Make all payments on time
First off, it’s very important not to miss payments after the bankruptcy has been filed. Remember that those missed payments were already decreasing your credit score before filing for bankruptcy. This is part of the reason why bankruptcy can help, even though there’s an initial drop in your credit score when you file. It’s just important not to fall behind again, stopping the damage from missed payments and building the score back up.
Use a secured credit card
You can also take active steps to repair your credit score, such as getting a secured credit card. This is a card that you obtain by giving a down payment to the lender. Because of the down payment, there’s no risk for that lender, but you can still rebuild your credit score by using the line of credit and paying it off monthly.One of the most important things to remember about bankruptcy is that it does not ruin your financial future forever. These are just a few ways that you can rebuild your credit score and get a fresh start. This is why it’s important to understand exactly what steps to take at this crucial time.
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